Guidance on Construction Loan TRID Application

A common issue for lenders following implementation of the TILA-RESPA Integrated Disclosure (“TRID”) Rule has been the context of construction loans. With the economy recovering in many parts of the country, construction is moving forward at a more rapid pace, and construction loans are more frequently issued than in years past.

The Consumer Financial Protection Bureau (“CFPB”) has now issued a short fact sheet regarding the application of TRID to construction loans. If construction phase lending may be converted to a permanent loan, then the two phases may be treated as a single transaction or multiple transactions for purposes of required disclosures. The Loan Estimate and Closing Disclosures under TRID must be issued accordingly.

You can find the new fact sheet here, and the CFPB’s TRID resource page is located here.

Please contact us if you have any questions.


By R. Scott Adams

R. Scott Adams

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: